Slow capex, higher project cost dented Siemens Q2 nos

Moneycontrol Bureau

Electronics and engineering company Siemens shares closed the day at Rs 502.80, down around 4 percent after its March quarter net profit fell around two fold to Rs 30 crore due to delays in project completion which further led to increase in costs.

Net sales also declined 26 percent to Rs 2956 crore due to weak performance in its infra, energy and healthcare businesses. EBITDA was down 1100 bps to 2.5 percent. Read This: Siemens Q2 disappoints, net falls 82% to Rs 30 cr

Revenues declined due to poor show from its core business verticals.

Here is a snapshot of how its various businesses performed during Q2

Infra Solution segment
*Net profit down 61 percent YoY to Rs 28.36 crore
*Sales down 11 percent YoY to Rs 857.7 crore

Energy vertical
*Loss of Rs 16 crore versus 385.59 crore
*Sales down to Rs 1025.68 crore as against Rs 188.50 crore

Healthcare business
*Profit of Rs 1 crore versus 12 crore loss YoY
*Sales marginally declined to Rs 288.crore as against Rs 290 crore.

Industry division
*Incurred loss of Rs 17.90 crore versus Rs 53 crore YoY
*Sales declined 46 percent to Rs 976 crore.

Factors that impacted Siemens’ Q2 performance

*Delays in off take by customers

*Sluggish industrial capex

*Completion of Qatar / Torrent projects which supported revenue during last year

*Lower execution in energy segment mainly due to ---

*Completion of large projects

*Slow moving orders

*Currency Impact: Weaker Rupee throughout the quarter also negatively impact profit margins as the company imports around 45 percent of raw materials